093_SB0774enr

 
SB774 Enrolled                       LRB093 03259 RCE 03276 b

 1        AN ACT concerning taxation.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 3.  The State Finance Act is amended by  changing
 5    Section 8.20 as follows:

 6        (30 ILCS 105/8.20) (from Ch. 127, par. 144.20)
 7        Sec.   8.20.    Appropriations   for   the  ordinary  and
 8    contingent expenses of the Illinois Liquor Control Commission
 9    shall be paid from the Dram Shop Fund.   Beginning  June  30,
10    1990  and on June 30 of each subsequent year through June 29,
11    2003, any balance over $5,000,000 remaining in the Dram  Shop
12    Fund  shall be credited to State liquor licensees and applied
13    against  their  fees  for  State  liquor  licenses  for   the
14    following  year.   The amount credited to each licensee shall
15    be a proportion of the balance in the Dram Shop Fund that  is
16    the  same  as  the  proportion of the license fee paid by the
17    licensee under Section 5-3 of the Liquor Control Act of 1934,
18    as now or hereafter amended, for  the  period  in  which  the
19    balance  was  accumulated  to  the aggregate fees paid by all
20    licensees during that period.
21        In addition to any other permitted use of moneys  in  the
22    Fund,  and  notwithstanding any restriction on the use of the
23    Fund, moneys in the Dram Shop Fund may be transferred to  the
24    General  Revenue Fund as authorized by Public Act 87-14.  The
25    General Assembly finds that an excess of  moneys  existed  in
26    the  Fund  on July 30, 1991, and the Governor's order of July
27    30,  1991,  requesting  the  Comptroller  and  Treasurer   to
28    transfer  an amount from the Fund to the General Revenue Fund
29    is hereby validated.
30    (Source: P.A. 90-372, eff. 7-1-98; 91-25, eff. 6-9-99.)
 
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 1        Section 5.  The Retailers' Occupation Tax Act is  amended
 2    by changing Section 3 as follows:

 3        (35 ILCS 120/3) (from Ch. 120, par. 442)
 4        Sec. 3.  Except as provided in this Section, on or before
 5    the  twentieth  day  of  each  calendar  month,  every person
 6    engaged in the business of selling tangible personal property
 7    at retail in this State during the preceding  calendar  month
 8    shall file a return with the Department, stating:
 9             1.  The name of the seller;
10             2.  His  residence  address  and  the address of his
11        principal place  of  business  and  the  address  of  the
12        principal  place  of  business  (if  that  is a different
13        address) from which he engages in the business of selling
14        tangible personal property at retail in this State;
15             3.  Total amount of receipts received by him  during
16        the  preceding calendar month or quarter, as the case may
17        be, from sales of tangible personal  property,  and  from
18        services furnished, by him during such preceding calendar
19        month or quarter;
20             4.  Total   amount   received   by  him  during  the
21        preceding calendar month or quarter on  charge  and  time
22        sales  of  tangible  personal property, and from services
23        furnished, by him prior to the month or quarter for which
24        the return is filed;
25             5.  Deductions allowed by law;
26             6.  Gross receipts which were received by him during
27        the preceding calendar month  or  quarter  and  upon  the
28        basis of which the tax is imposed;
29             7.  The  amount  of credit provided in Section 2d of
30        this Act;
31             8.  The amount of tax due;
32             9.  The signature of the taxpayer; and
33             10.  Such  other  reasonable  information   as   the
 
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 1        Department may require.
 2        If a taxpayer fails to sign a return within 30 days after
 3    the proper notice and demand for signature by the Department,
 4    the  return shall be considered valid and any amount shown to
 5    be due on the return shall be deemed assessed.
 6        Each return shall be  accompanied  by  the  statement  of
 7    prepaid tax issued pursuant to Section 2e for which credit is
 8    claimed.
 9        A  retailer  may  accept a Manufacturer's Purchase Credit
10    certification from a purchaser in satisfaction of Use Tax  as
11    provided  in Section 3-85 of the Use Tax Act if the purchaser
12    provides the appropriate documentation as required by Section
13    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
14    certification,  accepted by a retailer as provided in Section
15    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
16    satisfy  Retailers'  Occupation  Tax  liability in the amount
17    claimed in the certification, not  to  exceed  6.25%  of  the
18    receipts subject to tax from a qualifying purchase.
19        The  Department  may  require  returns  to  be filed on a
20    quarterly basis.  If so required, a return for each  calendar
21    quarter  shall be filed on or before the twentieth day of the
22    calendar month following the end of  such  calendar  quarter.
23    The taxpayer shall also file a return with the Department for
24    each  of the first two months of each calendar quarter, on or
25    before the twentieth day of  the  following  calendar  month,
26    stating:
27             1.  The name of the seller;
28             2.  The  address  of the principal place of business
29        from which he engages in the business of selling tangible
30        personal property at retail in this State;
31             3.  The total amount of taxable receipts received by
32        him during the preceding calendar  month  from  sales  of
33        tangible  personal  property by him during such preceding
34        calendar month, including receipts from charge  and  time
 
SB774 Enrolled             -4-       LRB093 03259 RCE 03276 b
 1        sales, but less all deductions allowed by law;
 2             4.  The  amount  of credit provided in Section 2d of
 3        this Act;
 4             5.  The amount of tax due; and
 5             6.  Such  other  reasonable   information   as   the
 6        Department may require.
 7        Beginning  on  October  1,  2003, any person who is not a
 8    licensed distributor, importing distributor, or manufacturer,
 9    as defined in the Liquor Control Act of 1934, but is  engaged
10    in  the  business  of  selling,  at  retail, alcoholic liquor
11    shall file a statement with the Department of Revenue,  in  a
12    format  and  at  a time prescribed by the Department, showing
13    the total amount paid for alcoholic liquor  purchased  during
14    the   preceding  month  and  such  other  information  as  is
15    reasonably required by the  Department.  The  Department  may
16    adopt  rules  to  require  that this statement be filed in an
17    electronic or telephonic format.  Such rules may provide  for
18    exceptions  from  the  filing requirements of this paragraph.
19    For the purposes  of  this  paragraph,  the  term  "alcoholic
20    liquor"  shall  have  the  meaning  prescribed  in the Liquor
21    Control Act of 1934.
22        Beginning  on  October  1,   2003,   every   distributor,
23    importing  distributor,  and manufacturer of alcoholic liquor
24    as defined in the Liquor Control Act of 1934,  shall  file  a
25    statement  with  the Department of Revenue, no later than the
26    10th day of the month for the preceding  month  during  which
27    transactions occurred, by electronic means, showing the total
28    amount  of  gross  receipts from the sale of alcoholic liquor
29    sold or distributed during the preceding month to purchasers;
30    identifying the purchaser to whom it was sold or distributed;
31    the purchaser's  tax  registration  number;  and  such  other
32    information  reasonably required by the Department. A copy of
33    the monthly statement shall be sent to the retailer no  later
34    than the 10th day of the month for the preceding month during
 
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 1    which transactions occurred.
 2        If  a total amount of less than $1 is payable, refundable
 3    or creditable, such amount shall be disregarded if it is less
 4    than 50 cents and shall be increased to $1 if it is 50  cents
 5    or more.
 6        Beginning  October 1, 1993, a taxpayer who has an average
 7    monthly tax liability of $150,000  or  more  shall  make  all
 8    payments  required  by  rules of the Department by electronic
 9    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
10    has  an  average  monthly  tax  liability of $100,000 or more
11    shall make all payments required by rules of  the  Department
12    by  electronic  funds transfer.  Beginning October 1, 1995, a
13    taxpayer who has an average monthly tax liability of  $50,000
14    or  more  shall  make  all  payments required by rules of the
15    Department by electronic funds transfer.   Beginning  October
16    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
17    $200,000 or more shall make all payments required by rules of
18    the  Department  by  electronic  funds  transfer.   The  term
19    "annual tax liability" shall be the  sum  of  the  taxpayer's
20    liabilities  under  this  Act,  and under all other State and
21    local  occupation  and  use  tax  laws  administered  by  the
22    Department, for the immediately preceding calendar year.  The
23    term  "average monthly tax liability" shall be the sum of the
24    taxpayer's liabilities under this Act, and  under  all  other
25    State  and  local occupation and use tax laws administered by
26    the Department, for the immediately preceding  calendar  year
27    divided  by  12. Beginning on October 1, 2002, a taxpayer who
28    has a tax liability in the amount set forth in subsection (b)
29    of Section 2505-210 of the Department of  Revenue  Law  shall
30    make  all  payments  required  by  rules of the Department by
31    electronic funds transfer.
32        Before August 1 of  each  year  beginning  in  1993,  the
33    Department  shall  notify  all  taxpayers  required  to  make
34    payments   by   electronic  funds  transfer.   All  taxpayers
 
SB774 Enrolled             -6-       LRB093 03259 RCE 03276 b
 1    required to make payments by electronic funds transfer  shall
 2    make  those  payments  for a minimum of one year beginning on
 3    October 1.
 4        Any taxpayer not required to make payments by  electronic
 5    funds transfer may make payments by electronic funds transfer
 6    with the permission of the Department.
 7        All  taxpayers  required  to  make  payment by electronic
 8    funds transfer and any taxpayers  authorized  to  voluntarily
 9    make  payments  by electronic funds transfer shall make those
10    payments in the manner authorized by the Department.
11        The Department shall adopt such rules as are necessary to
12    effectuate a program of electronic  funds  transfer  and  the
13    requirements of this Section.
14        Any  amount  which is required to be shown or reported on
15    any return or other document under this Act  shall,  if  such
16    amount  is  not  a  whole-dollar  amount, be increased to the
17    nearest whole-dollar amount in any case where the  fractional
18    part  of  a  dollar is 50 cents or more, and decreased to the
19    nearest whole-dollar amount where the fractional  part  of  a
20    dollar is less than 50 cents.
21        If  the  retailer is otherwise required to file a monthly
22    return and if the retailer's average monthly tax liability to
23    the Department does  not  exceed  $200,  the  Department  may
24    authorize  his returns to be filed on a quarter annual basis,
25    with the return for January, February and March  of  a  given
26    year  being due by April 20 of such year; with the return for
27    April, May and June of a given year being due by July  20  of
28    such  year; with the return for July, August and September of
29    a given year being due by October 20 of such year,  and  with
30    the return for October, November and December of a given year
31    being due by January 20 of the following year.
32        If  the  retailer is otherwise required to file a monthly
33    or quarterly return and if the retailer's average monthly tax
34    liability with  the  Department  does  not  exceed  $50,  the
 
SB774 Enrolled             -7-       LRB093 03259 RCE 03276 b
 1    Department may authorize his returns to be filed on an annual
 2    basis,  with the return for a given year being due by January
 3    20 of the following year.
 4        Such quarter annual and annual returns, as  to  form  and
 5    substance,  shall  be  subject  to  the  same requirements as
 6    monthly returns.
 7        Notwithstanding  any  other   provision   in   this   Act
 8    concerning  the  time  within  which  a retailer may file his
 9    return, in the case of any retailer who ceases to engage in a
10    kind of business  which  makes  him  responsible  for  filing
11    returns  under  this  Act,  such  retailer shall file a final
12    return under this Act with the Department not more  than  one
13    month after discontinuing such business.
14        Where   the  same  person  has  more  than  one  business
15    registered with the Department under  separate  registrations
16    under  this Act, such person may not file each return that is
17    due  as  a  single  return  covering  all   such   registered
18    businesses,  but  shall  file  separate returns for each such
19    registered business.
20        In addition, with respect to motor vehicles,  watercraft,
21    aircraft,  and  trailers  that  are required to be registered
22    with an agency of this State,  every  retailer  selling  this
23    kind  of  tangible  personal  property  shall  file, with the
24    Department, upon a form to be prescribed and supplied by  the
25    Department,  a separate return for each such item of tangible
26    personal property which the retailer sells, except  that  if,
27    in   the  same  transaction,  (i)  a  retailer  of  aircraft,
28    watercraft, motor vehicles or trailers  transfers  more  than
29    one aircraft, watercraft, motor vehicle or trailer to another
30    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
31    retailer  for  the  purpose  of  resale or (ii) a retailer of
32    aircraft, watercraft, motor vehicles, or  trailers  transfers
33    more than one aircraft, watercraft, motor vehicle, or trailer
34    to  a  purchaser  for  use  as  a qualifying rolling stock as
 
SB774 Enrolled             -8-       LRB093 03259 RCE 03276 b
 1    provided in Section 2-5 of this Act,  then  that  seller  may
 2    report  the  transfer  of  all  aircraft,  watercraft,  motor
 3    vehicles  or  trailers  involved  in  that transaction to the
 4    Department on the same uniform invoice-transaction  reporting
 5    return  form.   For  purposes  of  this Section, "watercraft"
 6    means a Class 2, Class 3, or Class 4 watercraft as defined in
 7    Section 3-2 of  the  Boat  Registration  and  Safety  Act,  a
 8    personal  watercraft,  or  any  boat equipped with an inboard
 9    motor.
10        Any retailer who sells only motor  vehicles,  watercraft,
11    aircraft, or trailers that are required to be registered with
12    an  agency  of  this State, so that all retailers' occupation
13    tax liability is required to be reported, and is reported, on
14    such transaction reporting returns and who is  not  otherwise
15    required  to file monthly or quarterly returns, need not file
16    monthly or quarterly returns.  However, those retailers shall
17    be required to file returns on an annual basis.
18        The transaction reporting return, in the  case  of  motor
19    vehicles  or trailers that are required to be registered with
20    an agency of this State, shall be the same  document  as  the
21    Uniform  Invoice referred to in Section 5-402 of The Illinois
22    Vehicle Code and must  show  the  name  and  address  of  the
23    seller;  the name and address of the purchaser; the amount of
24    the  selling  price  including  the  amount  allowed  by  the
25    retailer for traded-in property, if any; the  amount  allowed
26    by the retailer for the traded-in tangible personal property,
27    if  any,  to the extent to which Section 1 of this Act allows
28    an exemption for the value of traded-in property; the balance
29    payable after deducting  such  trade-in  allowance  from  the
30    total  selling price; the amount of tax due from the retailer
31    with respect to such transaction; the amount of tax collected
32    from the purchaser by the retailer on  such  transaction  (or
33    satisfactory  evidence  that  such  tax  is  not  due in that
34    particular instance, if that is claimed to be the fact);  the
 
SB774 Enrolled             -9-       LRB093 03259 RCE 03276 b
 1    place  and  date  of the sale; a sufficient identification of
 2    the property sold; such other information as is  required  in
 3    Section  5-402  of  The Illinois Vehicle Code, and such other
 4    information as the Department may reasonably require.
 5        The  transaction  reporting  return  in   the   case   of
 6    watercraft  or aircraft must show the name and address of the
 7    seller; the name and address of the purchaser; the amount  of
 8    the  selling  price  including  the  amount  allowed  by  the
 9    retailer  for  traded-in property, if any; the amount allowed
10    by the retailer for the traded-in tangible personal property,
11    if any, to the extent to which Section 1 of this  Act  allows
12    an exemption for the value of traded-in property; the balance
13    payable  after  deducting  such  trade-in  allowance from the
14    total selling price; the amount of tax due from the  retailer
15    with respect to such transaction; the amount of tax collected
16    from  the  purchaser  by the retailer on such transaction (or
17    satisfactory evidence that  such  tax  is  not  due  in  that
18    particular  instance, if that is claimed to be the fact); the
19    place and date of the sale, a  sufficient  identification  of
20    the   property  sold,  and  such  other  information  as  the
21    Department may reasonably require.
22        Such transaction reporting  return  shall  be  filed  not
23    later than 20 days after the day of delivery of the item that
24    is  being  sold, but may be filed by the retailer at any time
25    sooner than that if he chooses to  do  so.   The  transaction
26    reporting  return  and  tax  remittance or proof of exemption
27    from  the  Illinois  use  tax  may  be  transmitted  to   the
28    Department  by  way  of the State agency with which, or State
29    officer with whom the  tangible  personal  property  must  be
30    titled or registered (if titling or registration is required)
31    if  the Department and such agency or State officer determine
32    that  this  procedure  will  expedite   the   processing   of
33    applications for title or registration.
34        With each such transaction reporting return, the retailer
 
SB774 Enrolled             -10-      LRB093 03259 RCE 03276 b
 1    shall  remit  the  proper  amount of tax due (or shall submit
 2    satisfactory evidence that the sale is not taxable if that is
 3    the case), to the Department or  its  agents,  whereupon  the
 4    Department  shall  issue,  in the purchaser's name, a use tax
 5    receipt (or a certificate of exemption if the  Department  is
 6    satisfied  that the particular sale is tax exempt) which such
 7    purchaser may submit to  the  agency  with  which,  or  State
 8    officer  with  whom,  he  must title or register the tangible
 9    personal  property  that   is   involved   (if   titling   or
10    registration  is  required)  in  support  of such purchaser's
11    application for an Illinois certificate or other evidence  of
12    title or registration to such tangible personal property.
13        No  retailer's failure or refusal to remit tax under this
14    Act precludes a user, who has paid  the  proper  tax  to  the
15    retailer,  from  obtaining  his certificate of title or other
16    evidence of title or registration (if titling or registration
17    is required) upon satisfying the Department  that  such  user
18    has paid the proper tax (if tax is due) to the retailer.  The
19    Department  shall  adopt  appropriate  rules to carry out the
20    mandate of this paragraph.
21        If the user who would otherwise pay tax to  the  retailer
22    wants  the transaction reporting return filed and the payment
23    of the tax or proof  of  exemption  made  to  the  Department
24    before the retailer is willing to take these actions and such
25    user  has  not  paid  the  tax to the retailer, such user may
26    certify to the fact of such delay by  the  retailer  and  may
27    (upon  the  Department  being  satisfied of the truth of such
28    certification)  transmit  the  information  required  by  the
29    transaction reporting return and the remittance  for  tax  or
30    proof  of exemption directly to the Department and obtain his
31    tax receipt or exemption determination, in  which  event  the
32    transaction  reporting  return  and  tax remittance (if a tax
33    payment was required) shall be credited by the Department  to
34    the  proper  retailer's  account  with  the  Department,  but
 
SB774 Enrolled             -11-      LRB093 03259 RCE 03276 b
 1    without  the  2.1%  or  1.75%  discount  provided for in this
 2    Section being allowed.  When the user pays the  tax  directly
 3    to  the  Department,  he shall pay the tax in the same amount
 4    and in the same form in which it would be remitted if the tax
 5    had been remitted to the Department by the retailer.
 6        Refunds made by the seller during  the  preceding  return
 7    period   to  purchasers,  on  account  of  tangible  personal
 8    property returned to  the  seller,  shall  be  allowed  as  a
 9    deduction  under  subdivision  5  of his monthly or quarterly
10    return,  as  the  case  may  be,  in  case  the  seller   had
11    theretofore  included  the  receipts  from  the  sale of such
12    tangible personal property in a return filed by him  and  had
13    paid  the  tax  imposed  by  this  Act  with  respect to such
14    receipts.
15        Where the seller is a corporation, the  return  filed  on
16    behalf  of such corporation shall be signed by the president,
17    vice-president, secretary or treasurer  or  by  the  properly
18    accredited agent of such corporation.
19        Where  the  seller  is  a  limited liability company, the
20    return filed on behalf of the limited liability company shall
21    be signed by a manager, member, or properly accredited  agent
22    of the limited liability company.
23        Except  as  provided in this Section, the retailer filing
24    the return under this Section shall, at the  time  of  filing
25    such  return, pay to the Department the amount of tax imposed
26    by this Act less a discount of 2.1% prior to January 1,  1990
27    and  1.75%  on  and after January 1, 1990, or $5 per calendar
28    year, whichever is greater, which is allowed to reimburse the
29    retailer  for  the  expenses  incurred  in  keeping  records,
30    preparing and filing returns, remitting the tax and supplying
31    data to the  Department  on  request.   Any  prepayment  made
32    pursuant  to  Section 2d of this Act shall be included in the
33    amount on which such 2.1% or 1.75% discount is computed.   In
34    the  case  of  retailers  who  report  and  pay  the tax on a
 
SB774 Enrolled             -12-      LRB093 03259 RCE 03276 b
 1    transaction  by  transaction  basis,  as  provided  in   this
 2    Section,  such  discount  shall  be  taken with each such tax
 3    remittance instead of when such retailer files  his  periodic
 4    return.
 5        Before October 1, 2000, if the taxpayer's average monthly
 6    tax  liability  to the Department under this Act, the Use Tax
 7    Act, the Service Occupation Tax Act, and the Service Use  Tax
 8    Act,  excluding  any  liability  for  prepaid sales tax to be
 9    remitted in accordance with  Section  2d  of  this  Act,  was
10    $10,000  or  more  during  the  preceding 4 complete calendar
11    quarters, he shall file a return  with  the  Department  each
12    month  by  the 20th day of the month next following the month
13    during which such tax liability is incurred  and  shall  make
14    payments  to  the Department on or before the 7th, 15th, 22nd
15    and last day of the month  during  which  such  liability  is
16    incurred.  On  and  after  October 1, 2000, if the taxpayer's
17    average monthly tax liability to the  Department  under  this
18    Act, the Use Tax Act, the Service Occupation Tax Act, and the
19    Service  Use  Tax  Act,  excluding  any liability for prepaid
20    sales tax to be remitted in accordance  with  Section  2d  of
21    this Act, was $20,000 or more during the preceding 4 complete
22    calendar quarters, he shall file a return with the Department
23    each  month  by  the 20th day of the month next following the
24    month during which such tax liability is incurred  and  shall
25    make  payment  to  the Department on or before the 7th, 15th,
26    22nd and last day of the month during which such liability is
27    incurred.  If the month during which such  tax  liability  is
28    incurred  began  prior to January 1, 1985, each payment shall
29    be in an  amount  equal  to  1/4  of  the  taxpayer's  actual
30    liability  for  the  month or an amount set by the Department
31    not to exceed 1/4 of the average  monthly  liability  of  the
32    taxpayer  to  the  Department  for  the  preceding 4 complete
33    calendar quarters (excluding the month of  highest  liability
34    and  the month of lowest liability in such 4 quarter period).
 
SB774 Enrolled             -13-      LRB093 03259 RCE 03276 b
 1    If the month during which  such  tax  liability  is  incurred
 2    begins  on  or  after January 1, 1985 and prior to January 1,
 3    1987, each payment shall be in an amount equal  to  22.5%  of
 4    the taxpayer's actual liability for the month or 27.5% of the
 5    taxpayer's  liability  for  the  same  calendar  month of the
 6    preceding year.  If the month during which such tax liability
 7    is incurred begins on or after January 1, 1987 and  prior  to
 8    January  1, 1988, each payment shall be in an amount equal to
 9    22.5% of the taxpayer's actual liability  for  the  month  or
10    26.25%  of  the  taxpayer's  liability  for the same calendar
11    month of the preceding year.  If the month during which  such
12    tax liability is incurred begins on or after January 1, 1988,
13    and  prior  to January 1, 1989, or begins on or after January
14    1, 1996, each payment shall be in an amount equal to 22.5% of
15    the taxpayer's actual liability for the month or 25%  of  the
16    taxpayer's  liability  for  the  same  calendar  month of the
17    preceding year. If the month during which such tax  liability
18    is  incurred begins on or after January 1, 1989, and prior to
19    January 1, 1996, each payment shall be in an amount equal  to
20    22.5% of the taxpayer's actual liability for the month or 25%
21    of  the  taxpayer's  liability for the same calendar month of
22    the preceding year or 100% of the taxpayer's actual liability
23    for the quarter monthly reporting period.  The amount of such
24    quarter monthly payments shall be credited against the  final
25    tax  liability  of  the  taxpayer's  return  for  that month.
26    Before October 1, 2000, once applicable, the  requirement  of
27    the  making  of quarter monthly payments to the Department by
28    taxpayers having an average monthly tax liability of  $10,000
29    or  more  as  determined  in  the manner provided above shall
30    continue until such taxpayer's average monthly  liability  to
31    the  Department  during  the  preceding  4  complete calendar
32    quarters (excluding the month of highest  liability  and  the
33    month of lowest liability) is less than $9,000, or until such
34    taxpayer's  average  monthly  liability  to the Department as
 
SB774 Enrolled             -14-      LRB093 03259 RCE 03276 b
 1    computed  for  each  calendar  quarter  of  the  4  preceding
 2    complete  calendar  quarter  period  is  less  than  $10,000.
 3    However, if  a  taxpayer  can  show  the  Department  that  a
 4    substantial  change  in  the taxpayer's business has occurred
 5    which causes the taxpayer  to  anticipate  that  his  average
 6    monthly  tax  liability for the reasonably foreseeable future
 7    will fall below the $10,000 threshold stated above, then such
 8    taxpayer may petition the Department for  a  change  in  such
 9    taxpayer's  reporting  status.  On and after October 1, 2000,
10    once applicable, the requirement of  the  making  of  quarter
11    monthly  payments  to  the  Department by taxpayers having an
12    average  monthly  tax  liability  of  $20,000  or   more   as
13    determined  in the manner provided above shall continue until
14    such taxpayer's average monthly liability to  the  Department
15    during  the preceding 4 complete calendar quarters (excluding
16    the month of  highest  liability  and  the  month  of  lowest
17    liability)  is  less  than  $19,000  or until such taxpayer's
18    average monthly liability to the Department as  computed  for
19    each  calendar  quarter  of the 4 preceding complete calendar
20    quarter period is less than $20,000.  However, if a  taxpayer
21    can  show  the  Department  that  a substantial change in the
22    taxpayer's business has occurred which causes the taxpayer to
23    anticipate that his average monthly  tax  liability  for  the
24    reasonably  foreseeable  future  will  fall below the $20,000
25    threshold stated above, then such taxpayer may  petition  the
26    Department  for a change in such taxpayer's reporting status.
27    The Department shall change such taxpayer's reporting  status
28    unless  it  finds  that such change is seasonal in nature and
29    not likely to be long term.   If  any  such  quarter  monthly
30    payment  is not paid at the time or in the amount required by
31    this Section, then the taxpayer shall be liable for penalties
32    and interest on the difference between the minimum amount due
33    as a payment and the amount of such quarter  monthly  payment
34    actually  and timely paid, except insofar as the taxpayer has
 
SB774 Enrolled             -15-      LRB093 03259 RCE 03276 b
 1    previously made payments for that month to the Department  in
 2    excess  of the minimum payments previously due as provided in
 3    this Section. The Department shall make reasonable rules  and
 4    regulations  to govern the quarter monthly payment amount and
 5    quarter monthly payment dates for taxpayers who file on other
 6    than a calendar monthly basis.
 7        The provisions of this paragraph apply before October  1,
 8    2001.  Without  regard  to  whether a taxpayer is required to
 9    make  quarter  monthly  payments  as  specified  above,   any
10    taxpayer who is required by Section 2d of this Act to collect
11    and remit prepaid taxes and has collected prepaid taxes which
12    average in excess of $25,000 per month during the preceding 2
13    complete  calendar  quarters,  shall  file  a return with the
14    Department as required by Section 2f and shall make  payments
15    to  the  Department on or before the 7th, 15th, 22nd and last
16    day of the month during which such liability is incurred.  If
17    the month during which such tax liability is  incurred  began
18    prior  to  the effective date of this amendatory Act of 1985,
19    each payment shall be in an amount not less than 22.5% of the
20    taxpayer's actual liability under Section 2d.  If  the  month
21    during  which  such  tax  liability  is incurred begins on or
22    after January 1, 1986, each payment shall  be  in  an  amount
23    equal  to  22.5%  of  the taxpayer's actual liability for the
24    month or 27.5% of  the  taxpayer's  liability  for  the  same
25    calendar  month of the preceding calendar year.  If the month
26    during which such tax liability  is  incurred  begins  on  or
27    after  January  1,  1987,  each payment shall be in an amount
28    equal to 22.5% of the taxpayer's  actual  liability  for  the
29    month  or  26.25%  of  the  taxpayer's liability for the same
30    calendar month of the preceding year.   The  amount  of  such
31    quarter  monthly payments shall be credited against the final
32    tax liability of the taxpayer's return for that  month  filed
33    under  this  Section or Section 2f, as the case may be.  Once
34    applicable, the requirement of the making of quarter  monthly
 
SB774 Enrolled             -16-      LRB093 03259 RCE 03276 b
 1    payments  to  the Department pursuant to this paragraph shall
 2    continue until such taxpayer's average  monthly  prepaid  tax
 3    collections during the preceding 2 complete calendar quarters
 4    is  $25,000  or less.  If any such quarter monthly payment is
 5    not paid at the time or in the amount required, the  taxpayer
 6    shall   be   liable   for  penalties  and  interest  on  such
 7    difference, except insofar as  the  taxpayer  has  previously
 8    made  payments  for  that  month  in  excess  of  the minimum
 9    payments previously due.
10        The provisions of  this  paragraph  apply  on  and  after
11    October  1,  2001.    Without regard to whether a taxpayer is
12    required to make quarter monthly payments as specified above,
13    any taxpayer who is required by Section 2d  of  this  Act  to
14    collect  and  remit  prepaid  taxes and has collected prepaid
15    taxes that average in excess of $20,000 per month during  the
16    preceding  4  complete  calendar quarters shall file a return
17    with the Department as required by Section 2f and shall  make
18    payments  to  the Department on or before the 7th, 15th, 22nd
19    and last day of the  month  during  which  the  liability  is
20    incurred.   Each payment shall be in an amount equal to 22.5%
21    of the taxpayer's actual liability for the month  or  25%  of
22    the  taxpayer's  liability for the same calendar month of the
23    preceding year.  The amount of the quarter  monthly  payments
24    shall  be  credited  against  the  final tax liability of the
25    taxpayer's return for that month filed under this Section  or
26    Section  2f,  as  the  case  may  be.   Once  applicable, the
27    requirement of the making of quarter monthly payments to  the
28    Department  pursuant  to  this paragraph shall continue until
29    the taxpayer's average monthly prepaid tax collections during
30    the preceding 4 complete  calendar  quarters  (excluding  the
31    month of highest liability and the month of lowest liability)
32    is less than $19,000 or until such taxpayer's average monthly
33    liability  to  the  Department  as computed for each calendar
34    quarter of the 4 preceding complete calendar quarters is less
 
SB774 Enrolled             -17-      LRB093 03259 RCE 03276 b
 1    than $20,000.  If any such quarter  monthly  payment  is  not
 2    paid  at  the  time  or  in the amount required, the taxpayer
 3    shall  be  liable  for  penalties  and   interest   on   such
 4    difference,  except  insofar  as  the taxpayer has previously
 5    made payments  for  that  month  in  excess  of  the  minimum
 6    payments previously due.
 7        If  any  payment provided for in this Section exceeds the
 8    taxpayer's liabilities under this Act, the Use Tax  Act,  the
 9    Service  Occupation  Tax  Act and the Service Use Tax Act, as
10    shown on an original monthly return, the Department shall, if
11    requested by the taxpayer, issue to  the  taxpayer  a  credit
12    memorandum  no  later than 30 days after the date of payment.
13    The  credit  evidenced  by  such  credit  memorandum  may  be
14    assigned by the taxpayer to a  similar  taxpayer  under  this
15    Act,  the  Use Tax Act, the Service Occupation Tax Act or the
16    Service Use Tax Act, in accordance with reasonable rules  and
17    regulations  to  be prescribed by the Department.  If no such
18    request is made, the taxpayer may credit such excess  payment
19    against  tax  liability  subsequently  to  be remitted to the
20    Department under this Act,  the  Use  Tax  Act,  the  Service
21    Occupation  Tax Act or the Service Use Tax Act, in accordance
22    with reasonable  rules  and  regulations  prescribed  by  the
23    Department.   If  the Department subsequently determined that
24    all or any part of the credit taken was not actually  due  to
25    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
26    shall  be  reduced by 2.1% or 1.75% of the difference between
27    the credit taken and that actually  due,  and  that  taxpayer
28    shall   be   liable   for  penalties  and  interest  on  such
29    difference.
30        If a retailer of motor fuel is entitled to a credit under
31    Section 2d of this Act which exceeds the taxpayer's liability
32    to the Department under this Act  for  the  month  which  the
33    taxpayer  is  filing a return, the Department shall issue the
34    taxpayer a credit memorandum for the excess.
 
SB774 Enrolled             -18-      LRB093 03259 RCE 03276 b
 1        Beginning January 1,  1990,  each  month  the  Department
 2    shall  pay into the Local Government Tax Fund, a special fund
 3    in the State  treasury  which  is  hereby  created,  the  net
 4    revenue  realized  for the preceding month from the 1% tax on
 5    sales of food for human consumption which is to  be  consumed
 6    off  the  premises  where  it  is  sold (other than alcoholic
 7    beverages, soft drinks and food which has been  prepared  for
 8    immediate  consumption)  and prescription and nonprescription
 9    medicines,  drugs,  medical  appliances  and  insulin,  urine
10    testing materials, syringes and needles used by diabetics.
11        Beginning January 1,  1990,  each  month  the  Department
12    shall  pay  into the County and Mass Transit District Fund, a
13    special fund in the State treasury which is  hereby  created,
14    4%  of  the net revenue realized for the preceding month from
15    the 6.25% general rate.
16        Beginning August 1, 2000, each month the Department shall
17    pay into the County and Mass Transit District Fund 20% of the
18    net revenue realized for the preceding month from  the  1.25%
19    rate on the selling price of motor fuel and gasohol.
20        Beginning  January  1,  1990,  each  month the Department
21    shall pay into the Local Government Tax Fund 16% of  the  net
22    revenue  realized  for  the  preceding  month  from the 6.25%
23    general rate  on  the  selling  price  of  tangible  personal
24    property.
25        Beginning August 1, 2000, each month the Department shall
26    pay into the Local Government Tax Fund 80% of the net revenue
27    realized  for  the preceding month from the 1.25% rate on the
28    selling price of motor fuel and gasohol.
29        Of the remainder of the moneys received by the Department
30    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
31    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
32    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
33    into  the  Build Illinois Fund; provided, however, that if in
34    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 
SB774 Enrolled             -19-      LRB093 03259 RCE 03276 b
 1    as the case may be, of the moneys received by the  Department
 2    and required to be paid into the Build Illinois Fund pursuant
 3    to  this  Act, Section 9 of the Use Tax Act, Section 9 of the
 4    Service Use Tax Act, and Section 9 of the Service  Occupation
 5    Tax  Act,  such  Acts being hereinafter called the "Tax Acts"
 6    and such aggregate of 2.2% or 3.8%, as the case  may  be,  of
 7    moneys being hereinafter called the "Tax Act Amount", and (2)
 8    the  amount  transferred  to the Build Illinois Fund from the
 9    State and Local Sales Tax Reform Fund shall be less than  the
10    Annual  Specified  Amount (as hereinafter defined), an amount
11    equal to the difference shall be immediately  paid  into  the
12    Build  Illinois  Fund  from  other  moneys  received  by  the
13    Department  pursuant  to  the Tax Acts; the "Annual Specified
14    Amount" means the amounts specified below  for  fiscal  years
15    1986 through 1993:
16             Fiscal Year              Annual Specified Amount
17                 1986                       $54,800,000
18                 1987                       $76,650,000
19                 1988                       $80,480,000
20                 1989                       $88,510,000
21                 1990                       $115,330,000
22                 1991                       $145,470,000
23                 1992                       $182,730,000
24                 1993                      $206,520,000;
25    and  means  the Certified Annual Debt Service Requirement (as
26    defined in Section 13 of the Build Illinois Bond Act) or  the
27    Tax  Act  Amount,  whichever is greater, for fiscal year 1994
28    and each fiscal year thereafter; and further  provided,  that
29    if  on  the last business day of any month the sum of (1) the
30    Tax Act Amount  required  to  be  deposited  into  the  Build
31    Illinois  Bond Account in the Build Illinois Fund during such
32    month and (2) the amount transferred to  the  Build  Illinois
33    Fund  from  the  State  and Local Sales Tax Reform Fund shall
34    have been less than 1/12 of the Annual Specified  Amount,  an
 
SB774 Enrolled             -20-      LRB093 03259 RCE 03276 b
 1    amount equal to the difference shall be immediately paid into
 2    the  Build  Illinois  Fund  from other moneys received by the
 3    Department pursuant to the Tax Acts; and,  further  provided,
 4    that  in  no  event  shall  the  payments  required under the
 5    preceding proviso result in aggregate payments into the Build
 6    Illinois Fund pursuant to this clause (b) for any fiscal year
 7    in excess of the greater of (i) the Tax Act  Amount  or  (ii)
 8    the  Annual  Specified  Amount  for  such  fiscal  year.  The
 9    amounts payable into the Build Illinois Fund under clause (b)
10    of the first sentence in this paragraph shall be payable only
11    until such time as the aggregate amount on deposit under each
12    trust  indenture  securing  Bonds  issued   and   outstanding
13    pursuant to the Build Illinois Bond Act is sufficient, taking
14    into  account any future investment income, to fully provide,
15    in accordance with such indenture, for the defeasance  of  or
16    the  payment  of  the  principal  of,  premium,  if  any, and
17    interest on the Bonds secured by such indenture  and  on  any
18    Bonds expected to be issued thereafter and all fees and costs
19    payable  with  respect  thereto,  all  as  certified  by  the
20    Director  of  the  Bureau  of  the  Budget.   If  on the last
21    business day of any month  in  which  Bonds  are  outstanding
22    pursuant  to  the  Build  Illinois Bond Act, the aggregate of
23    moneys deposited in the Build Illinois Bond  Account  in  the
24    Build  Illinois  Fund  in  such  month shall be less than the
25    amount required to be transferred  in  such  month  from  the
26    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
27    Retirement and Interest Fund pursuant to Section  13  of  the
28    Build  Illinois  Bond Act, an amount equal to such deficiency
29    shall be immediately paid from other moneys received  by  the
30    Department  pursuant  to  the  Tax Acts to the Build Illinois
31    Fund; provided, however, that any amounts paid to  the  Build
32    Illinois  Fund  in  any fiscal year pursuant to this sentence
33    shall be deemed to constitute payments pursuant to clause (b)
34    of the first sentence of this paragraph and shall reduce  the
 
SB774 Enrolled             -21-      LRB093 03259 RCE 03276 b
 1    amount  otherwise  payable  for  such fiscal year pursuant to
 2    that clause (b).   The  moneys  received  by  the  Department
 3    pursuant  to  this  Act and required to be deposited into the
 4    Build Illinois Fund are subject  to  the  pledge,  claim  and
 5    charge  set  forth  in  Section 12 of the Build Illinois Bond
 6    Act.
 7        Subject to payment of amounts  into  the  Build  Illinois
 8    Fund  as  provided  in  the  preceding  paragraph  or  in any
 9    amendment thereto hereafter enacted, the following  specified
10    monthly   installment   of   the   amount  requested  in  the
11    certificate of the Chairman  of  the  Metropolitan  Pier  and
12    Exposition  Authority  provided  under  Section  8.25f of the
13    State Finance Act, but not in excess of  sums  designated  as
14    "Total  Deposit",  shall  be  deposited in the aggregate from
15    collections under Section 9 of the Use Tax Act, Section 9  of
16    the  Service Use Tax Act, Section 9 of the Service Occupation
17    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
18    into  the  McCormick  Place  Expansion  Project  Fund  in the
19    specified fiscal years.
20               Fiscal Year                           Total Deposit
21                   1993                                        $0
22                   1994                                53,000,000
23                   1995                                58,000,000
24                   1996                                61,000,000
25                   1997                                64,000,000
26                   1998                                68,000,000
27                   1999                                71,000,000
28                   2000                                75,000,000
29                   2001                                80,000,000
30                   2002                                93,000,000
31                   2003                                99,000,000
32                   2004                               103,000,000
33                   2005                               108,000,000
34                   2006                               113,000,000
 
SB774 Enrolled             -22-      LRB093 03259 RCE 03276 b
 1                   2007                               119,000,000
 2                   2008                               126,000,000
 3                   2009                               132,000,000
 4                   2010                               139,000,000
 5                   2011                               146,000,000
 6                   2012                               153,000,000
 7                   2013                               161,000,000
 8                   2014                               170,000,000
 9                   2015                               179,000,000
10                   2016                               189,000,000
11                   2017                               199,000,000
12                   2018                               210,000,000
13                   2019                               221,000,000
14                   2020                               233,000,000
15                   2021                               246,000,000
16                   2022                               260,000,000
17                 2023 and                             275,000,000
18    each fiscal year
19    thereafter that bonds
20    are outstanding under
21    Section 13.2 of the
22    Metropolitan Pier and
23    Exposition Authority
24    Act, but not after fiscal year 2042.
25        Beginning July 20, 1993 and in each month of each  fiscal
26    year  thereafter,  one-eighth  of the amount requested in the
27    certificate of the Chairman  of  the  Metropolitan  Pier  and
28    Exposition  Authority  for  that fiscal year, less the amount
29    deposited into the McCormick Place Expansion Project Fund  by
30    the  State Treasurer in the respective month under subsection
31    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
32    Authority  Act,  plus cumulative deficiencies in the deposits
33    required under this Section for previous  months  and  years,
34    shall be deposited into the McCormick Place Expansion Project
 
SB774 Enrolled             -23-      LRB093 03259 RCE 03276 b
 1    Fund,  until  the  full amount requested for the fiscal year,
 2    but not in excess of the amount  specified  above  as  "Total
 3    Deposit", has been deposited.
 4        Subject  to  payment  of  amounts into the Build Illinois
 5    Fund and the McCormick Place Expansion Project Fund  pursuant
 6    to  the  preceding  paragraphs  or  in any amendments thereto
 7    hereafter enacted, beginning July  1,  1993,  the  Department
 8    shall  each  month  pay  into the Illinois Tax Increment Fund
 9    0.27% of 80% of the net revenue realized  for  the  preceding
10    month  from  the  6.25%  general rate on the selling price of
11    tangible personal property.
12        Subject to payment of amounts  into  the  Build  Illinois
13    Fund  and the McCormick Place Expansion Project Fund pursuant
14    to the preceding paragraphs  or  in  any  amendments  thereto
15    hereafter  enacted,  beginning  with the receipt of the first
16    report of taxes paid by an eligible business  and  continuing
17    for  a  25-year  period,  the Department shall each month pay
18    into the Energy Infrastructure Fund 80% of  the  net  revenue
19    realized  from the 6.25% general rate on the selling price of
20    Illinois-mined coal that was sold to  an  eligible  business.
21    For  purposes of this paragraph, the term "eligible business"
22    means a new electric generating facility  certified  pursuant
23    to   Section  605-332  of  the  Department  of  Commerce  and
24    Community Affairs Law of the  Civil  Administrative  Code  of
25    Illinois.
26        Of the remainder of the moneys received by the Department
27    pursuant  to  this  Act,  75%  thereof shall be paid into the
28    State Treasury and 25% shall be reserved in a special account
29    and used only for the transfer to the Common School  Fund  as
30    part of the monthly transfer from the General Revenue Fund in
31    accordance with Section 8a of the State Finance Act.
32        The  Department  may,  upon  separate written notice to a
33    taxpayer, require the taxpayer to prepare and file  with  the
34    Department  on a form prescribed by the Department within not
 
SB774 Enrolled             -24-      LRB093 03259 RCE 03276 b
 1    less than 60 days after  receipt  of  the  notice  an  annual
 2    information  return for the tax year specified in the notice.
 3    Such  annual  return  to  the  Department  shall  include   a
 4    statement  of  gross receipts as shown by the retailer's last
 5    Federal income tax return.  If  the  total  receipts  of  the
 6    business  as reported in the Federal income tax return do not
 7    agree with the gross receipts reported to the  Department  of
 8    Revenue for the same period, the retailer shall attach to his
 9    annual  return  a  schedule showing a reconciliation of the 2
10    amounts and the reasons for the difference.   The  retailer's
11    annual  return to the Department shall also disclose the cost
12    of goods sold by the retailer during the year covered by such
13    return, opening and closing inventories  of  such  goods  for
14    such year, costs of goods used from stock or taken from stock
15    and  given  away  by  the  retailer during such year, payroll
16    information of the retailer's business during such  year  and
17    any  additional  reasonable  information which the Department
18    deems would be helpful in determining  the  accuracy  of  the
19    monthly,  quarterly  or annual returns filed by such retailer
20    as provided for in this Section.
21        If the annual information return required by this Section
22    is not filed when and as  required,  the  taxpayer  shall  be
23    liable as follows:
24             (i)  Until  January  1,  1994, the taxpayer shall be
25        liable for a penalty equal to 1/6 of 1% of  the  tax  due
26        from such taxpayer under this Act during the period to be
27        covered  by  the annual return for each month or fraction
28        of a month until such return is filed  as  required,  the
29        penalty  to  be assessed and collected in the same manner
30        as any other penalty provided for in this Act.
31             (ii)  On and after January  1,  1994,  the  taxpayer
32        shall be liable for a penalty as described in Section 3-4
33        of the Uniform Penalty and Interest Act.
34        The chief executive officer, proprietor, owner or highest
 
SB774 Enrolled             -25-      LRB093 03259 RCE 03276 b
 1    ranking  manager  shall sign the annual return to certify the
 2    accuracy of the information contained therein.    Any  person
 3    who  willfully  signs  the  annual return containing false or
 4    inaccurate  information  shall  be  guilty  of  perjury   and
 5    punished  accordingly.   The annual return form prescribed by
 6    the Department  shall  include  a  warning  that  the  person
 7    signing the return may be liable for perjury.
 8        The  provisions  of this Section concerning the filing of
 9    an annual information return do not apply to a  retailer  who
10    is  not required to file an income tax return with the United
11    States Government.
12        As soon as possible after the first day  of  each  month,
13    upon   certification   of  the  Department  of  Revenue,  the
14    Comptroller shall order transferred and the  Treasurer  shall
15    transfer  from the General Revenue Fund to the Motor Fuel Tax
16    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
17    realized  under  this  Act  for  the  second preceding month.
18    Beginning April 1, 2000, this transfer is no longer  required
19    and shall not be made.
20        Net  revenue  realized  for  a month shall be the revenue
21    collected by the State pursuant to this Act, less the  amount
22    paid  out  during  that  month  as  refunds  to taxpayers for
23    overpayment of liability.
24        For greater simplicity of administration,  manufacturers,
25    importers  and  wholesalers whose products are sold at retail
26    in Illinois by numerous retailers, and who wish to do so, may
27    assume the responsibility for accounting and  paying  to  the
28    Department  all  tax  accruing under this Act with respect to
29    such sales, if the retailers who are  affected  do  not  make
30    written objection to the Department to this arrangement.
31        Any  person  who  promotes,  organizes,  provides  retail
32    selling  space  for concessionaires or other types of sellers
33    at the Illinois State Fair, DuQuoin State Fair, county fairs,
34    local fairs, art shows, flea markets and similar  exhibitions
 
SB774 Enrolled             -26-      LRB093 03259 RCE 03276 b
 1    or  events,  including  any  transient merchant as defined by
 2    Section 2 of the Transient Merchant Act of 1987, is  required
 3    to  file  a  report with the Department providing the name of
 4    the merchant's business, the name of the  person  or  persons
 5    engaged  in  merchant's  business,  the permanent address and
 6    Illinois Retailers Occupation Tax Registration Number of  the
 7    merchant,  the  dates  and  location  of  the event and other
 8    reasonable information that the Department may require.   The
 9    report must be filed not later than the 20th day of the month
10    next  following  the month during which the event with retail
11    sales was held.  Any  person  who  fails  to  file  a  report
12    required  by  this  Section commits a business offense and is
13    subject to a fine not to exceed $250.
14        Any person engaged in the business  of  selling  tangible
15    personal property at retail as a concessionaire or other type
16    of  seller  at  the  Illinois  State  Fair, county fairs, art
17    shows, flea markets and similar exhibitions or events, or any
18    transient merchants, as defined by Section 2 of the Transient
19    Merchant Act of 1987, may be required to make a daily  report
20    of  the  amount of such sales to the Department and to make a
21    daily payment of the full amount of tax due.  The  Department
22    shall  impose  this requirement when it finds that there is a
23    significant risk of loss of revenue to the State at  such  an
24    exhibition  or  event.   Such  a  finding  shall  be based on
25    evidence that a  substantial  number  of  concessionaires  or
26    other  sellers  who  are  not  residents  of Illinois will be
27    engaging  in  the  business  of  selling  tangible   personal
28    property  at  retail  at  the  exhibition  or event, or other
29    evidence of a significant risk of  loss  of  revenue  to  the
30    State.  The Department shall notify concessionaires and other
31    sellers  affected  by the imposition of this requirement.  In
32    the  absence  of  notification   by   the   Department,   the
33    concessionaires and other sellers shall file their returns as
34    otherwise required in this Section.
 
SB774 Enrolled             -27-      LRB093 03259 RCE 03276 b
 1    (Source: P.A.   91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;
 2    91-101, eff. 7-12-99;  91-541,  eff.  8-13-99;  91-872,  eff.
 3    7-1-00;  91-901, eff. 1-1-01; 92-12, eff. 7-1-01; 92-16, eff.
 4    6-28-01; 92-208, eff. 8-2-01; 92-484, eff.  8-23-01;  92-492,
 5    eff. 1-1-02; 92-600, eff. 6-28-02; 92-651, eff. 7-11-02.)

 6        Section 10.  The Cigarette Tax Act is amended by changing
 7    Sections 3 and 29 as follows:

 8        (35 ILCS 130/3) (from Ch. 120, par. 453.3)
 9        Sec.   3.  Affixing  tax  stamp;  remitting  tax  to  the
10    Department.  Payment of the taxes imposed  by  Section  2  of
11    this  Act shall (except as hereinafter provided) be evidenced
12    by revenue tax stamps affixed to  each  original  package  of
13    cigarettes. Each distributor of cigarettes, before delivering
14    or causing to be delivered any original package of cigarettes
15    in  this  State  to  a purchaser, shall firmly affix a proper
16    stamp or  stamps  to  each  such  package,  or  (in  case  of
17    manufacturers  of  cigarettes  in original packages which are
18    contained inside a sealed transparent wrapper) shall  imprint
19    the  required  language on the original package of cigarettes
20    beneath such outside wrapper, as hereinafter provided.
21        No stamp or imprint may be affixed to, or made upon,  any
22    package  of  cigarettes unless that package complies with all
23    requirements  of   the   federal   Cigarette   Labeling   and
24    Advertising  Act,  15  U.S.C.  1331  and  following,  for the
25    placement of labels, warnings, or any other information  upon
26    a  package  of  cigarettes  that  is  sold  within the United
27    States.  Under the authority of  Section  6,  the  Department
28    shall   revoke   the  license  of  any  distributor  that  is
29    determined to have violated this paragraph. A person may  not
30    affix  a  stamp on a package of cigarettes, cigarette papers,
31    wrappers, or tubes if that individual package has been marked
32    for export outside the United States with a label  or  notice
 
SB774 Enrolled             -28-      LRB093 03259 RCE 03276 b
 1    in compliance with Section 290.185 of Title 27 of the Code of
 2    Federal Regulations.  It is not a defense to a proceeding for
 3    violation of this paragraph that the label or notice has been
 4    removed, mutilated, obliterated, or altered in any manner.
 5        The   Department,   or   any  person  authorized  by  the
 6    Department, shall sell such stamps only  to  persons  holding
 7    valid  licenses as distributors under this Act.  On and after
 8    July 1, 2003, payment for such stamps must be made  by  means
 9    of  electronic  funds transfer.  The Department may refuse to
10    sell stamps to any  person  who  does  not  comply  with  the
11    provisions  of  this  Act. Beginning on the effective date of
12    this amendatory Act of the 92nd General Assembly and  through
13    June 30, 2002, persons holding valid licenses as distributors
14    may  purchase  cigarette  tax stamps up to an amount equal to
15    115% of the distributor's average monthly cigarette tax stamp
16    purchases over the 12 calendar months prior to the  effective
17    date of this amendatory Act of the 92nd General Assembly.
18        Prior  to  December 1, 1985, the Department shall allow a
19    distributor 21 days in which to make  final  payment  of  the
20    amount   to   be  paid  for  such  stamps,  by  allowing  the
21    distributor to make payment for the stamps  at  the  time  of
22    purchasing  them  with a draft which shall be in such form as
23    the Department prescribes, and which shall be payable  within
24    21  days thereafter: Provided that such distributor has filed
25    with  the  Department,  and  has  received  the  Department's
26    approval of, a  bond,  which  is  in  addition  to  the  bond
27    required  under  Section  4  of  this  Act,  payable  to  the
28    Department  in  an  amount equal to 80% of such distributor's
29    average monthly tax liability to the  Department  under  this
30    Act during the preceding calendar year or $500,000, whichever
31    is  less. The Bond shall be joint and several and shall be in
32    the form of a  surety  company  bond  in  such  form  as  the
33    Department  prescribes,  or  it  may be in the form of a bank
34    certificate of deposit or bank letter  of  credit.  The  bond
 
SB774 Enrolled             -29-      LRB093 03259 RCE 03276 b
 1    shall be conditioned upon the distributor's payment of amount
 2    of  any  21-day  draft which the Department accepts from that
 3    distributor for the delivery of stamps  to  that  distributor
 4    under  this  Act.  The  distributor's failure to pay any such
 5    draft,  when  due,   shall   also   make   such   distributor
 6    automatically liable to the Department for a penalty equal to
 7    25% of the amount of such draft.
 8        On and after December 1, 1985 and until July 1, 2003, the
 9    Department shall allow a distributor 30 days in which to make
10    final  payment  of  the amount to be paid for such stamps, by
11    allowing the distributor to make payment for  the  stamps  at
12    the  time  of  purchasing them with a draft which shall be in
13    such form as the Department prescribes, and  which  shall  be
14    payable  within  30 days thereafter, and beginning on January
15    1, 2003 and thereafter, the draft shall be payable  by  means
16    of electronic funds transfer:  Provided that such distributor
17    has   filed   with  the  Department,  and  has  received  the
18    Department's approval of, a bond, which is in addition to the
19    bond required under Section 4 of this  Act,  payable  to  the
20    Department  in  an amount equal to 150% of such distributor's
21    average monthly tax liability to the  Department  under  this
22    Act during the preceding calendar year or $750,000, whichever
23    is less, except that as to bonds filed on or after January 1,
24    1987,  such  additional  bond  shall be in an amount equal to
25    100% of such  distributor's  average  monthly  tax  liability
26    under   this  Act  during  the  preceding  calendar  year  or
27    $750,000, whichever is less.  The bond  shall  be  joint  and
28    several  and shall be in the form of a surety company bond in
29    such form as the Department prescribes, or it may be  in  the
30    form  of  a  bank  certificate  of  deposit or bank letter of
31    credit. The bond shall be conditioned upon the  distributor's
32    payment   of  the  amount  of  any  30-day  draft  which  the
33    Department accepts from that distributor for the delivery  of
34    stamps to that distributor under this Act.  The distributor's
 
SB774 Enrolled             -30-      LRB093 03259 RCE 03276 b
 1    failure to pay any such draft, when due, shall also make such
 2    distributor  automatically  liable  to  the  Department for a
 3    penalty equal to 25% of the amount of such draft.
 4        Every  prior  continuous  compliance  taxpayer  shall  be
 5    exempt from all requirements under  this  Section  concerning
 6    the furnishing of such bond, as defined in this Section, as a
 7    condition  precedent to his being authorized to engage in the
 8    business licensed  under  this  Act.   This  exemption  shall
 9    continue  for each such taxpayer until such time as he may be
10    determined by the Department to be delinquent in  the  filing
11    of  any  returns,  or is determined by the Department (either
12    through the Department's issuance of a final assessment which
13    has become final under the Act, or by the  taxpayer's  filing
14    of  a  return which admits tax to be due that is not paid) to
15    be delinquent or deficient in the paying  of  any  tax  under
16    this Act, at which time that taxpayer shall become subject to
17    the  bond requirements of this Section and, as a condition of
18    being allowed to continue to engage in the business  licensed
19    under  this  Act,  shall  be  required to furnish bond to the
20    Department in such form as provided in  this  Section.   Such
21    taxpayer  shall  furnish  such  bond for a period of 2 years,
22    after which, if the taxpayer has not been delinquent  in  the
23    filing  of  any  returns,  or  delinquent or deficient in the
24    paying  of  any  tax  under  this  Act,  the  Department  may
25    reinstate such  person  as  a  prior  continuance  compliance
26    taxpayer.   Any  taxpayer  who  fails  to  pay an admitted or
27    established liability under this Act may also be required  to
28    post  bond  or  other acceptable security with the Department
29    guaranteeing the payment  of  such  admitted  or  established
30    liability.
31        Any  person  aggrieved  by any decision of the Department
32    under this Section may,  within  the  time  allowed  by  law,
33    protest and request a hearing, whereupon the Department shall
34    give  notice  and shall hold a hearing in conformity with the
 
SB774 Enrolled             -31-      LRB093 03259 RCE 03276 b
 1    provisions  of  this   Act   and   then   issue   its   final
 2    administrative decision in the matter to such person.  In the
 3    absence  of  such  a protest filed within the time allowed by
 4    law, the Department's decision shall become final without any
 5    further determination being made or notice given.
 6        The Department  shall  discharge  any  surety  and  shall
 7    release  and return any bond or security deposited, assigned,
 8    pledged, or otherwise provided to it by a taxpayer under this
 9    Section within 30 days after:
10        (1)  Such taxpayer becomes a prior continuous  compliance
11    taxpayer; or
12        (2)  Such  taxpayer  has  ceased  to  collect receipts on
13    which he is required to remit  tax  to  the  Department,  has
14    filed  a  final tax return, and has paid to the Department an
15    amount sufficient to discharge his remaining tax liability as
16    determined by the Department under this Act.  The  Department
17    shall   make   a   final   determination  of  the  taxpayer's
18    outstanding tax liability as expeditiously as possible  after
19    his  final  tax  return  has  been  filed.  If the Department
20    cannot make such final determination  within  45  days  after
21    receiving  the  final tax return, within such period it shall
22    so notify the taxpayer, stating its reasons therefor.
23        The  Department  may  authorize  distributors  to   affix
24    revenue  tax  stamps  by  imprinting  tax  meter  stamps upon
25    original packages of cigarettes. The Department  shall  adopt
26    rules  and regulations relating to the imprinting of such tax
27    meter stamps as will result in payment of the proper taxes as
28    herein imposed. No distributor may affix revenue  tax  stamps
29    to  original  packages  of cigarettes by imprinting tax meter
30    stamps thereon unless such  distributor  has  first  obtained
31    permission  from  the  Department  to  employ  this method of
32    affixation. The Department shall  regulate  the  use  of  tax
33    meters  and may, to assure the proper collection of the taxes
34    imposed  by  this  Act,  revoke  or  suspend  the  privilege,
 
SB774 Enrolled             -32-      LRB093 03259 RCE 03276 b
 1    theretofore granted by the Department to any distributor,  to
 2    imprint   tax   meter   stamps   upon  original  packages  of
 3    cigarettes.
 4        Illinois  cigarette   manufacturers   who   place   their
 5    cigarettes  in original packages which are contained inside a
 6    sealed  transparent   wrapper,   and   similar   out-of-State
 7    cigarette manufacturers who elect to qualify and are accepted
 8    by  the  Department  as distributors under Section 4b of this
 9    Act, shall pay the taxes imposed by this Act by remitting the
10    amount thereof to the Department by the 5th day of each month
11    covering  cigarettes  shipped  or  otherwise   delivered   in
12    Illinois  to  purchasers during the preceding calendar month.
13    Such manufacturers of cigarettes in original  packages  which
14    are  contained  inside  a  sealed transparent wrapper, before
15    delivering such cigarettes or causing such cigarettes  to  be
16    delivered  in  this State to purchasers, shall evidence their
17    obligation to remit  the  taxes  due  with  respect  to  such
18    cigarettes  by  imprinting  language  to be prescribed by the
19    Department  on  each  original  package  of  such  cigarettes
20    underneath the sealed transparent  outside  wrapper  of  such
21    original package, in such place thereon and in such manner as
22    the  Department  may designate. Such imprinted language shall
23    acknowledge the manufacturer's payment of  or  liability  for
24    the  tax imposed by this Act with respect to the distribution
25    of such cigarettes.
26        A distributor shall not affix, or cause  to  be  affixed,
27    any  stamp or imprint to a package of cigarettes, as provided
28    for in this Section, if the tobacco product manufacturer,  as
29    defined  in  Section 10 of the Tobacco Product Manufacturers'
30    Escrow Act, that made or sold the cigarettes  has  failed  to
31    become   a   participating   manufacturer,   as   defined  in
32    subdivision (a)(1) of  Section  15  of  the  Tobacco  Product
33    Manufacturers'   Escrow  Act,  or  has  failed  to  create  a
34    qualified escrow fund for any cigarettes manufactured by  the
 
SB774 Enrolled             -33-      LRB093 03259 RCE 03276 b
 1    tobacco  product  manufacturer  and  sold  in  this  State or
 2    otherwise  failed  to  bring  itself  into  compliance   with
 3    subdivision  (a)(2)  of  Section  15  of  the Tobacco Product
 4    Manufacturers' Escrow Act.
 5    (Source: P.A. 91-246,  eff.  7-22-99;  92-322,  eff.  1-1-02;
 6    92-536, eff. 6-6-02; 92-737, eff. 7-25-02; revised 9-10-02.)

 7        (35 ILCS 130/29) (from Ch. 120, par. 453.29)
 8        Sec.  29.  All moneys received by the Department from the
 9    one-half  mill  tax  imposed  by  the  Sixty-fourth   General
10    Assembly   and   all  interest  and  penalties,  received  in
11    connection therewith under the provisions of this  Act  shall
12    be  paid  into the Metropolitan Fair and Exposition Authority
13    Reconstruction  Fund.  All  other  moneys  received  by   the
14    Department  under  this  Act  shall  be paid into the General
15    Revenue Fund in the State treasury. After there has been paid
16    into  the  Metropolitan   Fair   and   Exposition   Authority
17    Reconstruction  Fund  sufficient  money  to  pay in full both
18    principal and interest, all of the outstanding  bonds  issued
19    pursuant to the "Fair and Exposition Authority Reconstruction
20    Act",  the  State Treasurer and Comptroller shall transfer to
21    the General Revenue Fund the balance of moneys  remaining  in
22    the Metropolitan Fair and Exposition Authority Reconstruction
23    Fund   except  for  $2,500,000  which  shall  remain  in  the
24    Metropolitan Fair  and  Exposition  Authority  Reconstruction
25    Fund  and  which  may be appropriated by the General Assembly
26    for the corporate  purposes  of  the  Metropolitan  Pier  and
27    Exposition  Authority.  All monies received by the Department
28    in fiscal year 1978 and thereafter from the one-half mill tax
29    imposed  by  the  Sixty-fourth  General  Assembly,  and   all
30    interest and penalties received in connection therewith under
31    the  provisions  of  this Act, shall be paid into the General
32    Revenue Fund, except that the Department shall pay the  first
33    $4,800,000  received  in  fiscal years 1979 through 2001 from
 
SB774 Enrolled             -34-      LRB093 03259 RCE 03276 b
 1    that  one-half  mill  tax  into  the  Metropolitan  Fair  and
 2    Exposition Authority Reconstruction Fund which monies may  be
 3    appropriated  by  the  General  Assembly  for  the  corporate
 4    purposes of the Metropolitan Pier and Exposition Authority.
 5        In fiscal year 2002 and each fiscal year 2003 thereafter,
 6    the first $4,800,000 from the one-half mill tax shall be paid
 7    into the Statewide Economic Development Fund.
 8    (Source: P.A. 92-208, eff. 8-2-01.)

 9        Section  15.  The  Cigarette  Use  Tax  Act is amended by
10    changing Section 3 as follows:

11        (35 ILCS 135/3) (from Ch. 120, par. 453.33)
12        Sec. 3.  Stamp payment. The tax hereby imposed  shall  be
13    collected by a distributor maintaining a place of business in
14    this  State  or  a  distributor  authorized by the Department
15    pursuant to Section 7 hereof to  collect  the  tax,  and  the
16    amount  of  the  tax  shall  be  added  to  the  price of the
17    cigarettes sold by such distributor. Collection  of  the  tax
18    shall  be  evidenced  by  a  stamp  or stamps affixed to each
19    original package of cigarettes or by an authorized substitute
20    for such stamp imprinted on each  original  package  of  such
21    cigarettes  underneath the sealed transparent outside wrapper
22    of such original package,  except  as  hereinafter  provided.
23    Each distributor who is required or authorized to collect the
24    tax  herein  imposed,  before  delivering  or  causing  to be
25    delivered any original packages of cigarettes in  this  State
26    to any purchaser, shall firmly affix a proper stamp or stamps
27    to  each  such  package,  or (in the case of manufacturers of
28    cigarettes in original packages which are contained inside  a
29    sealed   transparent  wrapper)  shall  imprint  the  required
30    language on the original package of cigarettes  beneath  such
31    outside wrapper as hereinafter provided. Such stamp or stamps
32    need not be affixed to the original package of any cigarettes
 
SB774 Enrolled             -35-      LRB093 03259 RCE 03276 b
 1    with  respect to which the distributor is required to affix a
 2    like stamp or stamps by virtue  of  the  Cigarette  Tax  Act,
 3    however,  and  no  tax  imprint need be placed underneath the
 4    sealed  transparent  wrapper  of  an  original   package   of
 5    cigarettes  with respect to which the distributor is required
 6    or authorized to employ a like tax imprint by virtue  of  the
 7    Cigarette Tax Act.
 8        No  stamp or imprint may be affixed to, or made upon, any
 9    package of cigarettes unless that package complies  with  all
10    requirements   of   the   federal   Cigarette   Labeling  and
11    Advertising Act,  15  U.S.C.  1331  and  following,  for  the
12    placement  of labels, warnings, or any other information upon
13    a package of  cigarettes  that  is  sold  within  the  United
14    States.   Under  the  authority  of Section 6, the Department
15    shall  revoke  the  license  of  any  distributor   that   is
16    determined to have violated this paragraph.  A person may not
17    affix  a  stamp on a package of cigarettes, cigarette papers,
18    wrappers, or tubes if that individual package has been marked
19    for export outside the United States with a label  or  notice
20    in compliance with Section 290.185 of Title 27 of the Code of
21    Federal Regulations.  It is not a defense to a proceeding for
22    violation of this paragraph that the label or notice has been
23    removed, mutilated, obliterated, or altered in any manner.
24        Stamps,  when required hereunder, shall be purchased from
25    the Department, or any person authorized by  the  Department,
26    by distributors.  On and after July 1, 2003, payment for such
27    stamps  must  be  made by means of electronic funds transfer.
28    The Department may refuse to sell stamps to  any  person  who
29    does  not  comply with the provisions of this Act.  Beginning
30    on June 6, 2002 the effective date of this amendatory Act  of
31    the  92nd General Assembly and through June 30, 2002, persons
32    holding valid licenses as distributors may purchase cigarette
33    tax stamps up to an amount equal to 115% of the distributor's
34    average monthly cigarette tax stamp  purchases  over  the  12
 
SB774 Enrolled             -36-      LRB093 03259 RCE 03276 b
 1    calendar  months  prior to June 6, 2002 the effective date of
 2    this amendatory Act of the 92nd General Assembly.
 3        Prior to December 1, 1985, the Department shall  allow  a
 4    distributor  21  days  in  which to make final payment of the
 5    amount  to  be  paid  for  such  stamps,  by   allowing   the
 6    distributor  to  make  payment  for the stamps at the time of
 7    purchasing them with a draft which shall be in such  form  as
 8    the  Department prescribes, and which shall be payable within
 9    21 days thereafter: Provided that such distributor has  filed
10    with  the  Department,  and  has  received  the  Department's
11    approval  of,  a  bond,  which  is  in  addition  to the bond
12    required  under  Section  4  of  this  Act,  payable  to  the
13    Department in an amount equal to 80%  of  such  distributor's
14    average  monthly  tax  liability to the Department under this
15    Act during the preceding calendar year or $500,000, whichever
16    is less. The bond shall be joint and several and shall be  in
17    the  form  of  a  surety  company  bond  in  such form as the
18    Department prescribes, or it may be in the  form  of  a  bank
19    certificate  of  deposit  or  bank letter of credit. The bond
20    shall be conditioned upon the distributor's  payment  of  the
21    amount  of any 21-day draft which the Department accepts from
22    that  distributor  for  the  delivery  of  stamps   to   that
23    distributor  under this Act. The distributor's failure to pay
24    any such draft, when due, shall also  make  such  distributor
25    automatically liable to the Department for a penalty equal to
26    25% of the amount of such draft.
27        On and after December 1, 1985 and until July 1, 2003, the
28    Department shall allow a distributor 30 days in which to make
29    final  payment  of  the amount to be paid for such stamps, by
30    allowing the distributor to make payment for  the  stamps  at
31    the  time  of  purchasing them with a draft which shall be in
32    such form as the Department prescribes, and  which  shall  be
33    payable  within  30 days thereafter, and beginning on January
34    1, 2003 and thereafter, the draft shall be payable  by  means
 
SB774 Enrolled             -37-      LRB093 03259 RCE 03276 b
 1    of electronic funds transfer:  Provided that such distributor
 2    has   filed   with  the  Department,  and  has  received  the
 3    Department's approval of, a bond, which is in addition to the
 4    bond required under Section 4 of this  Act,  payable  to  the
 5    Department  in  an amount equal to 150% of such distributor's
 6    average monthly tax liability to the  Department  under  this
 7    Act during the preceding calendar year or $750,000, whichever
 8    is less, except that as to bonds filed on or after January 1,
 9    1987,  such  additional  bond  shall be in an amount equal to
10    100% of such  distributor's  average  monthly  tax  liability
11    under   this  Act  during  the  preceding  calendar  year  or
12    $750,000, whichever is less.  The bond  shall  be  joint  and
13    several  and shall be in the form of a surety company bond in
14    such form as the Department prescribes, or it may be  in  the
15    form  of  a  bank  certificate  of  deposit or bank letter of
16    credit. The bond shall be conditioned upon the  distributor's
17    payment   of  the  amount  of  any  30-day  draft  which  the
18    Department accepts from that distributor for the delivery  of
19    stamps to that distributor under this Act.  The distributor's
20    failure to pay any such draft, when due, shall also make such
21    distributor  automatically  liable  to  the  Department for a
22    penalty equal to 25% of the amount of such draft.
23        Every  prior  continuous  compliance  taxpayer  shall  be
24    exempt from all requirements under  this  Section  concerning
25    the furnishing of such bond, as defined in this Section, as a
26    condition  precedent to his being authorized to engage in the
27    business licensed  under  this  Act.   This  exemption  shall
28    continue  for each such taxpayer until such time as he may be
29    determined by the Department to be delinquent in  the  filing
30    of  any  returns,  or is determined by the Department (either
31    through the Department's issuance of a final assessment which
32    has become final under the Act, or by the  taxpayer's  filing
33    of  a  return which admits tax to be due that is not paid) to
34    be delinquent or deficient in the paying  of  any  tax  under
 
SB774 Enrolled             -38-      LRB093 03259 RCE 03276 b
 1    this Act, at which time that taxpayer shall become subject to
 2    the  bond requirements of this Section and, as a condition of
 3    being allowed to continue to engage in the business  licensed
 4    under  this  Act,  shall  be  required to furnish bond to the
 5    Department in such form as provided in  this  Section.   Such
 6    taxpayer  shall  furnish  such  bond for a period of 2 years,
 7    after which, if the taxpayer has not been delinquent  in  the
 8    filing  of  any  returns,  or  delinquent or deficient in the
 9    paying  of  any  tax  under  this  Act,  the  Department  may
10    reinstate such  person  as  a  prior  continuance  compliance
11    taxpayer.   Any  taxpayer  who  fails  to  pay an admitted or
12    established liability under this Act may also be required  to
13    post  bond  or  other acceptable security with the Department
14    guaranteeing the payment  of  such  admitted  or  established
15    liability.
16        Any  person  aggrieved  by any decision of the Department
17    under this Section may,  within  the  time  allowed  by  law,
18    protest and request a hearing, whereupon the Department shall
19    give  notice  and shall hold a hearing in conformity with the
20    provisions  of  this   Act   and   then   issue   its   final
21    administrative decision in the matter to such person.  In the
22    absence  of  such  a protest filed within the time allowed by
23    law, the Department's decision shall become final without any
24    further determination being made or notice given.
25        The Department  shall  discharge  any  surety  and  shall
26    release  and return any bond or security deposited, assigned,
27    pledged, or otherwise provided to it by a taxpayer under this
28    Section within 30 days after:
29             (1)  such  Taxpayer  becomes  a   prior   continuous
30        compliance taxpayer; or
31             (2)  such taxpayer has ceased to collect receipts on
32        which  he is required to remit tax to the Department, has
33        filed a final tax return, and has paid to the  Department
34        an  amount  sufficient  to  discharge  his  remaining tax
 
SB774 Enrolled             -39-      LRB093 03259 RCE 03276 b
 1        liability as determined by the Department under this Act.
 2        The Department shall make a final  determination  of  the
 3        taxpayer's  outstanding tax liability as expeditiously as
 4        possible after his final tax return has been  filed.   If
 5        the  Department  cannot  make  such  final  determination
 6        within  45  days  after  receiving  the final tax return,
 7        within such period  it  shall  so  notify  the  taxpayer,
 8        stating its reasons therefor.
 9        At the time of purchasing such stamps from the Department
10    when  purchase  is  required by this Act, or at the time when
11    the tax which he has collected is remitted by  a  distributor
12    to  the  Department  without  the purchase of stamps from the
13    Department when that method of remitting  the  tax  that  has
14    been  collected  is  required  or authorized by this Act, the
15    distributor shall be  allowed  a  discount  during  any  year
16    commencing  July  1  and  ending  the  following  June  30 in
17    accordance with the schedule set out  hereinbelow,  from  the
18    amount  to  be paid by him to the Department for such stamps,
19    or to be paid by him  to  the  Department  on  the  basis  of
20    monthly  remittances (as the case may be), to cover the cost,
21    to such distributor, of collecting the tax herein imposed  by
22    affixing  such  stamps to the original packages of cigarettes
23    sold  by  such  distributor  or  by  placing   tax   imprints
24    underneath   the   sealed  transparent  wrapper  of  original
25    packages of cigarettes sold by such distributor (as the  case
26    may  be):  (1) Prior to December 1, 1985, a discount equal to
27    1-2/3% of the amount of the tax up to and including the first
28    $700,000 paid hereunder by such distributor to the Department
29    during any such year; 1-1/3% of the next $700,000 of  tax  or
30    any  part  thereof, paid hereunder by such distributor to the
31    Department during any such year; 1% of the next  $700,000  of
32    tax,  or any part thereof, paid hereunder by such distributor
33    to the Department during any such year; and 2/3 of 1% of  the
34    amount   of   any  additional  tax  paid  hereunder  by  such
 
SB774 Enrolled             -40-      LRB093 03259 RCE 03276 b
 1    distributor to the Department during any such year or (2)  On
 2    and  after December 1, 1985, a discount equal to 1.75% of the
 3    amount of the tax payable under this Act up to and  including
 4    the  first  $3,000,000  paid hereunder by such distributor to
 5    the Department during any such year and 1.5% of the amount of
 6    any additional tax paid hereunder by such distributor to  the
 7    Department during any such year.
 8        Two  or  more  distributors  that  use  a common means of
 9    affixing revenue tax stamps or that are owned  or  controlled
10    by   the   same  interests  shall  be  treated  as  a  single
11    distributor for the purpose of computing the discount.
12        Cigarette manufacturers who are distributors  under  this
13    Act,  and  who  place  their  cigarettes in original packages
14    which are contained  inside  a  sealed  transparent  wrapper,
15    shall be required to remit the tax which they are required to
16    collect  under  this  Act  to the Department by remitting the
17    amount thereof to the Department  by  the  5th  day  of  each
18    month,  covering cigarettes shipped or otherwise delivered to
19    points  in  Illinois  to  purchasers  during  the   preceding
20    calendar  month,  but  a  distributor  need  not remit to the
21    Department the tax so collected by him from purchasers  under
22    this  Act to the extent to which such distributor is required
23    to remit the tax imposed by the  Cigarette  Tax  Act  to  the
24    Department  with  respect  to  the same cigarettes. All taxes
25    upon cigarettes under this Act are  a  direct  tax  upon  the
26    retail  consumer  and  shall  conclusively  be presumed to be
27    precollected for the  purpose  of  convenience  and  facility
28    only.  Distributors  who  are  manufacturers of cigarettes in
29    original  packages  which  are  contained  inside  a   sealed
30    transparent  wrapper,  before  delivering  such cigarettes or
31    causing such cigarettes to be  delivered  in  this  State  to
32    purchasers,  shall  evidence  their obligation to collect and
33    remit  the  tax  due  with  respect  to  such  cigarettes  by
34    imprinting language to be prescribed  by  the  Department  on
 
SB774 Enrolled             -41-      LRB093 03259 RCE 03276 b
 1    each  original  package  of  such  cigarettes  underneath the
 2    sealed transparent outside wrapper of such original  package,
 3    in  such  place  thereon and in such manner as the Department
 4    may prescribe; provided (as stated  hereinbefore)  that  this
 5    requirement  does not apply when such distributor is required
 6    or authorized by the Cigarette  Tax  Act  to  place  the  tax
 7    imprint  provided  for  in the last paragraph of Section 3 of
 8    that Act underneath the sealed transparent  wrapper  of  such
 9    original package of cigarettes. Such imprinted language shall
10    acknowledge  the  manufacturer's collection and payment of or
11    liability for the tax imposed by this  Act  with  respect  to
12    such cigarettes.
13        The  Department  shall adopt the design or designs of the
14    tax stamps and shall procure the printing of such  stamps  in
15    such  amounts  and  denominations  as  it  deems necessary to
16    provide for the affixation of the proper amount of tax stamps
17    to each original package of cigarettes.
18        Where  tax  stamps  are  required,  the  Department   may
19    authorize   distributors  to  affix  revenue  tax  stamps  by
20    imprinting  tax  meter  stamps  upon  original  packages   of
21    cigarettes.  The Department shall adopt rules and regulations
22    relating to the imprinting of such tax meter stamps  as  will
23    result  in  payment of the proper taxes as herein imposed. No
24    distributor may affix revenue tax stamps to original packages
25    of cigarettes by imprinting meter stamps thereon unless  such
26    distributor has first obtained permission from the Department
27    to  employ  this  method  of affixation. The Department shall
28    regulate the use of tax meters and may, to assure the  proper
29    collection  of  the  taxes  imposed  by  this  Act, revoke or
30    suspend the privilege, theretofore granted by the  Department
31    to any distributor, to imprint tax meter stamps upon original
32    packages of cigarettes.
33        The  tax  hereby  imposed  and  not paid pursuant to this
34    Section shall be paid  to  the  Department  directly  by  any
 
SB774 Enrolled             -42-      LRB093 03259 RCE 03276 b
 1    person  using  such cigarettes within this State, pursuant to
 2    Section 12 hereof.
 3        A distributor shall not affix, or cause  to  be  affixed,
 4    any  stamp or imprint to a package of cigarettes, as provided
 5    for in this Section, if the tobacco product manufacturer,  as
 6    defined  in  Section 10 of the Tobacco Product Manufacturers'
 7    Escrow Act, that made or sold the cigarettes  has  failed  to
 8    become   a   participating   manufacturer,   as   defined  in
 9    subdivision (a)(1) of  Section  15  of  the  Tobacco  Product
10    Manufacturers'   Escrow  Act,  or  has  failed  to  create  a
11    qualified escrow fund for any cigarettes manufactured by  the
12    tobacco  product  manufacturer  and  sold  in  this  State or
13    otherwise  failed  to  bring  itself  into  compliance   with
14    subdivision  (a)(2)  of  Section  15  of  the Tobacco Product
15    Manufacturers' Escrow Act.
16    (Source: P.A. 91-246,  eff.  7-22-99;  92-322,  eff.  1-1-02;
17    92-536, eff. 6-6-02; 92-737, eff. 7-25-02; revised 9-10-02.)

18        Section 20.  The Liquor Control Act of 1934 is amended by
19    changing Sections 5-3, 7-5, 7-6, and 8-2 as follows:

20        (235 ILCS 5/5-3) (from Ch. 43, par. 118)
21        Sec.  5-3.   License  fees.  Except as otherwise provided
22    herein,  at  the  time  application  is  made  to  the  State
23    Commission for a license of any class,  the  applicant  shall
24    pay  to the State Commission the fee hereinafter provided for
25    the kind of license applied for.
26        The fee for licenses issued by the State Commission shall
27    be as follows:
28        For a manufacturer's license:
29        Class 1. Distiller ...........................     $3,600
30        Class 2. Rectifier ...........................      3,600
31        Class 3. Brewer ..............................        900
32        Class 4. First-class Wine Manufacturer .......        600
 
SB774 Enrolled             -43-      LRB093 03259 RCE 03276 b
 1        Class 5. Second-class
 2             Wine Manufacturer .......................      1,200
 3        Class 6. First-class wine-maker ..............        600
 4        Class 7. Second-class wine-maker .............       1200
 5        Class 8.  Limited Wine Manufacturer...........        120
 6        For a Brew Pub License .......................      1,050
 7        For a caterer retailer's license..............        200
 8        For a foreign importer's license .............         25
 9        For an importing distributor's license .......         25
10        For a distributor's license ..................        270
11        For a non-resident dealer's license
12             (500,000 gallons or over) ...............        270
13        For a non-resident dealer's license
14             (under 500,000 gallons) .................         90
15        For a wine-maker's premises license ..........        100
16        For a wine-maker's premises license,
17             second location .........................        350
18        For a wine-maker's premises license,
19             third location ..........................        350
20        For a retailer's license .....................    500 175
21        For a special event retailer's license,
22             (not-for-profit) ........................         25
23        For a special use permit license,
24             one day only ............................         50
25             2 days or more ..........................        100
26        For a railroad license .......................         60
27        For a boat license ...........................        180
28        For an airplane license, times the
29             licensee's maximum number of aircraft
30             in flight, serving liquor over the
31             State at any given time, which either
32             originate, terminate, or make
33             an intermediate stop in the State .......         60
34        For a non-beverage user's license:
 
SB774 Enrolled             -44-      LRB093 03259 RCE 03276 b
 1             Class 1 .................................         24
 2             Class 2 .................................         60
 3             Class 3 .................................        120
 4             Class 4 .................................        240
 5             Class 5 .................................        600
 6        For a broker's license .......................        600
 7        For an auction liquor license ................         50
 8        Fees collected under this Section shall be paid into  the
 9    Dram  Shop  Fund.   On  and  after July 1, 2003, of the funds
10    received for a retailer's license, in addition to  the  first
11    $175,  an  additional  $75  shall  be paid into the Dram Shop
12    Fund, and $250 shall be paid into the General  Revenue  Fund.
13    Beginning  June  30,  1990  and on June 30 of each subsequent
14    year through June  29,  2003,  any  balance  over  $5,000,000
15    remaining  in  the  Dram Shop Fund shall be credited to State
16    liquor licensees and applied against  their  fees  for  State
17    liquor  licenses for the following year.  The amount credited
18    to each licensee shall be a proportion of the  balance in the
19    Dram Fund that is the same as the proportion of  the  license
20    fee paid by the licensee under this Section for the period in
21    which  the balance was accumulated to the aggregate fees paid
22    by all licensees during that period.
23        No fee shall be paid for licenses  issued  by  the  State
24    Commission to the following non-beverage users:
25             (a)  Hospitals,  sanitariums,  or clinics when their
26        use  of  alcoholic  liquor  is   exclusively   medicinal,
27        mechanical or scientific.
28             (b)  Universities,  colleges  of learning or schools
29        when  their  use  of  alcoholic  liquor  is   exclusively
30        medicinal, mechanical or scientific.
31             (c)  Laboratories  when their use is exclusively for
32        the purpose of scientific research.
33    (Source: P.A.  91-25,  eff.  6-9-99;  91-357,  eff.  7-29-99;
34    92-378, eff. 8-16-01.)
 
SB774 Enrolled             -45-      LRB093 03259 RCE 03276 b
 1        (235 ILCS 5/7-5) (from Ch. 43, par. 149)
 2        Sec.  7-5.   The  local  liquor  control commissioner may
 3    revoke or suspend any license issued by him if he  determines
 4    that  the licensee has violated any of the provisions of this
 5    Act or of any valid ordinance or resolution  enacted  by  the
 6    particular  city  council, president, or board of trustees or
 7    county board (as the case may be) or any applicable  rule  or
 8    regulations   established   by   the   local  liquor  control
 9    commissioner  or  the   State   commission   which   is   not
10    inconsistent  with  law.  Upon  notification  by the Illinois
11    Department of Revenue, the State Commission shall revoke  any
12    license  issued  by  it  if  the  licensee  has  violated the
13    provisions of Section 3 of the Retailers' Occupation Tax Act.
14     In addition to the  suspension,  the  local  liquor  control
15    commissioner in any county or municipality may levy a fine on
16    the  licensee for such violations. The fine imposed shall not
17    exceed $1000 for a first violation within a 12-month  period,
18    $1,500  for  a second violation within a 12-month period, and
19    $2,500 for a third or subsequent violation within a  12-month
20    period.  Each  day  on  which  a  violation  continues  shall
21    constitute  a  separate  violation.  Not more than $15,000 in
22    fines under this Section may be imposed against any  licensee
23    during  the  period  of his license. Proceeds from such fines
24    shall be paid into the general corporate fund of  the  county
25    or municipal treasury, as the case may be.
26        However, no such license shall be so revoked or suspended
27    and  no licensee shall be fined except after a public hearing
28    by the local liquor control commissioner with a 3 day written
29    notice to the licensee affording the licensee an  opportunity
30    to  appear and defend. All such hearings shall be open to the
31    public and the local liquor control commissioner shall reduce
32    all evidence to writing and shall maintain an official record
33    of the proceedings. If the local liquor control  commissioner
34    has  reason  to  believe  that  any  continued operation of a
 
SB774 Enrolled             -46-      LRB093 03259 RCE 03276 b
 1    particular licensed premises will  immediately  threaten  the
 2    welfare  of  the  community  he  may,  upon the issuance of a
 3    written order stating the  reason  for  such  conclusion  and
 4    without  notice or hearing order the licensed premises closed
 5    for not more than 7 days, giving the licensee an  opportunity
 6    to  be heard during that period, except that if such licensee
 7    shall also be engaged in the conduct of another  business  or
 8    businesses  on  the licensed premises such order shall not be
 9    applicable to such other business or businesses.
10        The local liquor control commissioner shall within 5 days
11    after such hearing, if he determines after such hearing  that
12    the  license  should  be  revoked  or  suspended  or that the
13    licensee should be fined, state the  reason  or  reasons  for
14    such  determination in a written order, and either the amount
15    of the fine, the period of suspension, or  that  the  license
16    has been revoked, and shall serve a copy of such order within
17    the 5 days upon the licensee.
18        If  the  premises  for  which  the license was issued are
19    located outside of  a  city,  village  or  incorporated  town
20    having  a  population  of  500,000  or  more inhabitants, the
21    licensee after the receipt of such  order  of  suspension  or
22    revocation  shall  have  the  privilege within a period of 20
23    days after  the  receipt  of  such  order  of  suspension  or
24    revocation of appealing the order to the State commission for
25    a  decision  sustaining,  reversing or modifying the order of
26    the  local  liquor  control  commissioner.   If   the   State
27    commission  affirms the local commissioner's order to suspend
28    or revoke the license at the  first  hearing,  the  appellant
29    shall  cease  to engage in the business for which the license
30    was  issued,  until  the  local   commissioner's   order   is
31    terminated  by  its own provisions or reversed upon rehearing
32    or by the courts.
33        If the premises for which  the  license  was  issued  are
34    located  within a city, village or incorporated town having a
 
SB774 Enrolled             -47-      LRB093 03259 RCE 03276 b
 1    population of 500,000 or more inhabitants, the licensee shall
 2    have the privilege, within a period  of  20  days  after  the
 3    receipt  of  such order of fine, suspension or revocation, of
 4    appealing the order to the local  license  appeal  commission
 5    and  upon  the  filing  of such an appeal by the licensee the
 6    license appeal commission shall  determine  the  appeal  upon
 7    certified   record   of   proceedings  of  the  local  liquor
 8    commissioner in accordance with  the  provisions  of  Section
 9    7-9.  Within  30 days after such appeal was heard the license
10    appeal commission  shall  render  a  decision  sustaining  or
11    reversing the order of the local liquor control commissioner.
12    (Source: P.A. 91-854, eff. 1-1-01.)

13        (235 ILCS 5/7-6) (from Ch. 43, par. 150)
14        Sec.   7-6.    All  proceedings  for  the  revocation  or
15    suspension  of  licenses  of   manufacturers,   distributors,
16    importing   distributors,   non-resident   dealers,   foreign
17    importers, non-beverage users, railroads, airplanes and boats
18    shall  be  before  the State Commission. All such proceedings
19    and all proceedings for the revocation  or  suspension  of  a
20    retailer's  license  before  the State commission shall be in
21    accordance with rules and regulations established by  it  not
22    inconsistent  with  law. However, no such license shall be so
23    revoked or suspended except after  a  hearing  by  the  State
24    commission  with  reasonable notice to the licensee served by
25    registered or certified mail with return receipt requested at
26    least 10 days prior to the hearings at the last  known  place
27    of  business  of  the  licensee  and  after an opportunity to
28    appear and defend. Such notice shall  specify  the  time  and
29    place of the hearing, the nature of the charges, the specific
30    provisions  of  the  Act and rules violated, and the specific
31    facts supporting the charges or violation.  The  findings  of
32    the  Commission  shall be predicated upon competent evidence.
33    The revocation of a local license shall automatically  result
 
SB774 Enrolled             -48-      LRB093 03259 RCE 03276 b
 1    in  the  revocation  of a State license. Upon notification by
 2    the Illinois Department  of  Revenue,  the  State  Commission
 3    shall  revoke  any  license  issued by it if the licensee has
 4    violated the  provisions  of  Section  3  of  the  Retailers'
 5    Occupation  Tax  Act.    All procedures for the suspension or
 6    revocation of a license, as enumerated above, are  applicable
 7    to  the  levying  of  fines for violations of this Act or any
 8    rule or regulation issued pursuant thereto.
 9    (Source: P.A. 91-553, eff. 8-14-99.)

10        (235 ILCS 5/8-2) (from Ch. 43, par. 159)
11        Sec. 8-2.  It is  the  duty  of  each  manufacturer  with
12    respect  to  alcoholic  liquor  produced  or imported by such
13    manufacturer, or purchased tax-free by such manufacturer from
14    another manufacturer or importing distributor,  and  of  each
15    importing  distributor  as  to  alcoholic liquor purchased by
16    such importing distributor from  foreign  importers  or  from
17    anyone  from  any  point in the United States outside of this
18    State or purchased  tax-free  from  another  manufacturer  or
19    importing  distributor, to pay the tax imposed by Section 8-1
20    to the Department of Revenue on or before the 15th day of the
21    calendar month following the calendar  month  in  which  such
22    alcoholic  liquor  is sold or used by such manufacturer or by
23    such  importing  distributor  other  than  in  an  authorized
24    tax-free manner or to pay that tax electronically as provided
25    in this Section.
26        Each manufacturer and each  importing  distributor  shall
27    make  payment  under  one of the following methods: (1) on or
28    before the 15th day of each calendar month, file in person or
29    by United States first-class mail, postage pre-paid, with the
30    Department of Revenue, on forms prescribed and  furnished  by
31    the  Department,  a  report in writing in such form as may be
32    required by the Department in order to  compute,  and  assure
33    the accuracy of, the tax due on all taxable sales and uses of
 
SB774 Enrolled             -49-      LRB093 03259 RCE 03276 b
 1    alcoholic   liquor  occurring  during  the  preceding  month.
 2    Payment of the tax in the  amount  disclosed  by  the  report
 3    shall  accompany the report or, (2) on or before the 15th day
 4    of  each  calendar  month,  electronically  file   with   the
 5    Department  of  Revenue, on forms prescribed and furnished by
 6    the Department, an electronic report in such form as  may  be
 7    required  by  the  Department in order to compute, and assure
 8    the accuracy of, the tax due on all taxable sales and uses of
 9    alcoholic liquor occurring during the  preceding  month.   An
10    electronic  payment of the tax in the amount disclosed by the
11    report  shall  accompany  the  report.   A  manufacturer   or
12    distributor who files an electronic report and electronically
13    pays   the  tax  imposed  pursuant  to  Section  8-1  to  the
14    Department of Revenue on  or  before  the  15th  day  of  the
15    calendar  month  following  the  calendar month in which such
16    alcoholic liquor is sold or  used  by  that  manufacturer  or
17    importing  distributor  other  than in an authorized tax-free
18    manner shall pay to the Department  the  amount  of  the  tax
19    imposed  pursuant to Section 8-1, less a discount of 1.75% or
20    $1,250 per return, whichever is less,  which  is  allowed  to
21    reimburse  the  manufacturer or importing distributor for the
22    expenses  incurred  in  keeping  and   maintaining   records,
23    preparing  and  filing  the electronic returns, remitting the
24    tax, and supplying data to the Department upon request.
25        The discount shall be in an amount as follows:
26             (1)  For original returns due on or after January 1,
27        2003 through September 30, 2003, the  discount  shall  be
28        1.75% or $1,250 per return, whichever is less;
29             (2)  For original returns due on or after October 1,
30        2003 through September 30, 2004, the discount shall be 2%
31        or $3,000 per return, whichever is less; and
32             (3)  For original returns due on or after October 1,
33        2004,  the  discount  shall  be  2% or $2,000 per return,
34        whichever is less.
 
SB774 Enrolled             -50-      LRB093 03259 RCE 03276 b
 1        The Department may, if it deems it necessary in order  to
 2    insure  the  payment  of  the  tax  imposed  by this Article,
 3    require returns to be made more frequently than and  covering
 4    periods  of less than a month. Such return shall contain such
 5    further information as the Department may reasonably require.
 6        It shall be presumed that all alcoholic liquors  acquired
 7    or  made  by  any  importing distributor or manufacturer have
 8    been sold or used by him in this State and are the basis  for
 9    the  tax  imposed  by  this  Article  unless  proven,  to the
10    satisfaction of the Department, that such  alcoholic  liquors
11    are (1) still in the possession of such importing distributor
12    or   manufacturer,   or  (2)  prior  to  the  termination  of
13    possession have been lost by theft or  through  unintentional
14    destruction, or (3) that such alcoholic liquors are otherwise
15    exempt from taxation under this Act.
16        The  Department  may require any foreign importer to file
17    monthly information returns, by the 15th  day  of  the  month
18    following  the  month  which  any  such return covers, if the
19    Department determines this to  be  necessary  to  the  proper
20    performance  of  the  Department's functions and duties under
21    this Act. Such return shall contain such information  as  the
22    Department may reasonably require.
23        Every  manufacturer  and importing distributor shall also
24    file, with the Department, a bond in an amount not less  than
25    $1,000  and  not  to exceed $100,000 on a form to be approved
26    by, and with  a  surety  or  sureties  satisfactory  to,  the
27    Department.   Such   bond   shall  be  conditioned  upon  the
28    manufacturer  or  importing   distributor   paying   to   the
29    Department  all monies becoming due from such manufacturer or
30    importing distributor  under  this  Article.  The  Department
31    shall  fix the penalty of such bond in each case, taking into
32    consideration the amount of alcoholic liquor expected  to  be
33    sold  and used by such manufacturer or importing distributor,
34    and the penalty fixed by the Department shall be  sufficient,
 
SB774 Enrolled             -51-      LRB093 03259 RCE 03276 b
 1    in the Department's opinion, to protect the State of Illinois
 2    against failure to pay any amount due under this Article, but
 3    the  amount  of the penalty fixed by the Department shall not
 4    exceed twice the amount of tax liability of a monthly return,
 5    nor shall the amount of such penalty be less than $1,000. The
 6    Department shall notify the Commission  of  the  Department's
 7    approval   or  disapproval  of  any  such  manufacturer's  or
 8    importing  distributor's  bond,  or  of  the  termination  or
 9    cancellation  of  any  such  bond,  or  of  the  Department's
10    direction to a manufacturer or importing distributor that  he
11    must  file  additional  bond  in  order  to  comply with this
12    Section. The Commission shall not  issue  a  license  to  any
13    applicant  for  a  manufacturer's  or importing distributor's
14    license unless the Commission  has  received  a  notification
15    from  the  Department showing that such applicant has filed a
16    satisfactory bond with the Department hereunder and that such
17    bond has been approved by  the  Department.  Failure  by  any
18    licensed  manufacturer  or  importing  distributor  to keep a
19    satisfactory bond in effect with the Department or to furnish
20    additional bond to the Department, when required hereunder by
21    the Department to do so, shall be grounds for the  revocation
22    or   suspension   of   such   manufacturer's   or   importing
23    distributor's license by the Commission. If a manufacturer or
24    importing  distributor fails to pay any amount due under this
25    Article,  his  bond  with  the  Department  shall  be  deemed
26    forfeited, and the Department may institute a suit in its own
27    name on such bond.
28        After notice and opportunity  for  a  hearing  the  State
29    Commission   may   revoke  or  suspend  the  license  of  any
30    manufacturer or importing distributor  who  fails  to  comply
31    with  the  provisions of this Section. Notice of such hearing
32    and the time and place thereof shall be in writing and  shall
33    contain a statement of the charges against the licensee. Such
34    notice  may be given by United States registered or certified
 
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 1    mail with return receipt requested, addressed to  the  person
 2    concerned  at  his  last known address and shall be given not
 3    less than 7 days prior to the date fixed for the hearing.  An
 4    order  revoking  or suspending a license under the provisions
 5    of this Section may be reviewed in  the  manner  provided  in
 6    Section  7-10 of this Act. No new license shall be granted to
 7    a person whose license has been revoked for  a  violation  of
 8    this Section or, in case of suspension, shall such suspension
 9    be  terminated  until he has paid to the Department all taxes
10    and penalties which he owes the State under the provisions of
11    this Act.
12        Every manufacturer or importing distributor who  has,  as
13    verified  by  the  Department, continuously complied with the
14    conditions of the bond under this Act for a period of 2 years
15    shall be considered  to  be  a  prior  continuous  compliance
16    taxpayer.   In determining the consecutive period of time for
17    qualification as a prior continuous compliance taxpayer,  any
18    consecutive   period   of   time   of  qualifying  compliance
19    immediately prior to the effective date  of  this  amendatory
20    Act  of  1987  shall  be  credited  to  any  manufacturer  or
21    importing distributor.
22        Every  prior  continuous  compliance  taxpayer  shall  be
23    exempt  from  the  bond  requirements  of  this Act until the
24    Department has determined the taxpayer to  be  delinquent  in
25    the  filing  of any return or deficient in the payment of any
26    tax under this  Act.   Any  taxpayer  who  fails  to  pay  an
27    admitted  or established liability under this Act may also be
28    required to post bond or other acceptable security  with  the
29    Department  guaranteeing  the  payment  of  such  admitted or
30    established liability.
31        The Department  shall  discharge  any  surety  and  shall
32    release  and  return  any  bond or security deposit assigned,
33    pledged or otherwise provided to it by a taxpayer under  this
34    Section  within  30  days  after: (1) such taxpayer becomes a
 
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 1    prior continuous compliance taxpayer; or  (2)  such  taxpayer
 2    has  ceased  to  collect  receipts on which he is required to
 3    remit tax to the Department, has filed a  final  tax  return,
 4    and  has  paid  to  the  Department  an  amount sufficient to
 5    discharge his remaining tax liability as  determined  by  the
 6    Department under this Act.
 7    (Source: P.A. 92-393, eff. 1-1-03.)

 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.